Fund Board Votes to Extend Coverage for Buildings “Shuttered” Due to Budget Woes

By Laura Vedrin

Like most providers of property coverage, the Fund’s coverage document normally does not provide coverage for buildings that have been vacant for more than 90 days. 

The reason for the traditional vacancy clauses is that, typically, a “vacant” building is a structure that is not occupied, does not contain enough contents to conduct customary operations, and is essentially abandoned.  These structures become a target for vandalism and tend to deteriorate rapidly and, therefore, are usually excluded from coverage.

However, the current school finance environment has created a situation where all vacant buildings are not old or abandoned buildings. A number of school districts are “shuttering” newly built or usable buildings as a budget saving measure. These structures are not in use due to decreased enrollment, consolidation of resources, or cuts in funding.  Most of these buildings are not past their usefulness; in fact, some are brand new structures. 

In response, the Fund Board has approved a process by which the Fund will provide coverage for certain usable, but currently vacant buildings owned by Fund members. Members who would like to request coverage for these buildings can do so by completing the form available on the Property Resources page on the Fund's Web Site. As a condition of coverage, members will be asked to agree to the following maintenance and loss prevention measures to minimize the risk of damage to the building:

1. A written and signed log verifying at least weekly walkthroughs of the facility, both interior and exterior, by staff to look for broken water pipes, vandalism, or other facility issues. (The log should not be kept at the vacant building.)
2. Monitored security and fire alarm systems in place and active, if present.
3. If sprinklers systems are present, these are required to remain active and ensure mandated inspections are conducted.
4. If sprinklers systems are not present, water to the building should be turned off and the entire system drained and boilers protected to prevent corrosion of equipment components.
5. Adequate heating and cooling systems to prevent freezing or the advent of mold must be maintained and turned on.
6. Maintenance of the exterior landscaping to keep fire hazards manageable, prevent damage to roofs due to low hanging branches or debris accumulation, and the appearance of occupancy must be continued.
7. Unnecessary access to buildings, parking areas, playgrounds, and other locations with open access should be closed.
8. Make the building available to periodic inspections by representatives of the TASB Risk Management Fund.

The Fund is pleased to be able to offer this coverage enhancement to members during these challenging times.  For more information, please contact your district’s Risk Management Consultant.